WHEN it comes to “undiscovered” corners of the city, there are two types: the charming, little blocks in the West Village and elsewhere tucked around meandering backstreets and alleys, and the kind of blocks that people often fail to check out because they’re too busy using the pavement simply to get somewhere else.

East Houston Street falls in the latter category – but the stretch between Mulberry and Elizabeth streets has a surprising wealth of quirky, inviting spots that make it a great place for a funky evening’s hang.

Starting at the southeast corner of East Houston and Mulberry, the first place you’ll notice is an artists’ yard/mini-fleamarket, where everything from original paintings to old bicycles are being sold by a slightly left-of-center crowd. A few minutes of immersion in the scene makes it easy to imagine that you’re still living in the ’70s.

Right up the street there’s a pair of bars, Botanica (at 47 E. Houston St., [212] 343-7251) and Milano’s (No. 51, [212] 226-8844), to get some drinking started.

Botanica is pure dive. You descend a short flight of steps to enter its dingy, roughly plastered interior, where a pint of Rolling Rock will set you back all of $3. Moody East Village-types huddled at the bar belie the friendly reception you’ll receive once inside. There’s also a slightly more mellow back room if you’re looking for a calmer vibe.

Not quite next door is Milano’s, one of the city’s favorite dives. The long, thin entrance is half taken up by the bar itself – you’ll have to squeeze by the regulars parked at it to get in the place. The chatty bartenders will make you feel at home, moreso if the soundtrack to your home life consists largely of the Ramones played at high volume.

Milano’s is a great late-night spot to take out-of-towners who want to see a bit of real New York bar life – it’s a welcome break from the usual lineup of sanitized lounges, and come 4 a.m. it’s anybody’s guess as to what might happen.

Across the street, taking up almost the entire block, is Soho Billiards (technically at 298 Mulberry St., [212] 925-3753), where a table for two costs $12 an hour. It’s a big, straightforward place that doesn’t pretend to be anything other than what it is – a pool hall, that is, not an “upscale billiards parlor,” despite the name – and for a quick game or 10, it’s hard to beat.

Looking east through the large windows of Soho Billiards, you’ll spot the 288 (288 Elizabeth St., [212] 260-5045), better known as Tom and Jerry’s after an eggnog Christmas cocktail served there. It’s a great compromise between a dive bar and a proper saloon – it’s well-lit, with hardwood floors and art on the walls, but it’s unpretentious enough to host a stray afternoon or evening downing cheap pints and plugging quarters into the jukebox.

Around the corner back on East Houston, William Leroy (76 E. Houston St., [917] 576-6980), a bizzare movie-prop rental emporium, often does business well past their 8 p.m. closing time. It’s an amazing place to wander around slack-jawed (and open-walleted, if you plan on picking up that giant stuffed marlin you’ve been hankering for).

Cross back over Houston and end your block experience at the excellent Brazilian restaurant Café Colonial (No. 73, [212] 274-0044). The menu of both appetizers and entrées is well-selected and well-seasoned; corn on the cob in particular ($2.50) is to die for, as are the potent caipirinhia’s – which may be just enough to put you in a party mood.

If that’s the case, you’ll no doubt be heading back to Milano’s for a late one.